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Interconnecx quietly added an 8% PayPal payment fee with zero notice
I've had a 1U hobby server colocated with Interconnecx (https://www.incx.net/) since 2024 — found them through a recommendation here and have generally been happy with the service. That changed recently when I noticed my PayPal auto-pay jumped from $50 to $54/month with no explanation.
Digging into the invoices, I found they added a flat $4.00 "PayPal payment fee" as a line item. A few problems with this:
No advance notice. I only discovered it after paying two months at the higher rate. When I asked them to show me the WHMCS mass-email notification they sent customers about this change, they couldn't — because it appears none was sent.
I never agreed to it. PayPal had no surcharge when I signed up.
- The math doesn't add up. PayPal's actual processing fees are ~3% max. On a $50 invoice that's ~$1.50. They're charging $4.00 — that's 8% of my monthly bill, more than double what they're actually paying.
When I pushed back, they essentially said the fee is non-negotiable and that I'm welcome to cancel — with unspecified fees to pack and ship my server back.
I've decided to stay since the colo itself is solid and I rarely need support, but this felt like a shady way to run a business. I ended up switching to Zelle to avoid the surcharge entirely.
Has anyone else with Interconnecx run into this? Curious if this was applied across the board or targeted at specific accounts.
Comments
You can report it to PayPal and they’ll have to drop the charge or PayPal will drop them. It’s very much against PayPal terms. Cringe for a company to not even do a second of research before imposing fees like this, but I guess that’s expected from certain providers.
https://www.paypal.com/us/legalhub/paypal/useragreement-full
There have historically been a bunch of companies dancing around the question of what kind of fees are allowed or not. It's kind of a stupidity indicator. If they were clever they'd just discount all other payment methods but i figure they don't like the idea of displaying bigger price tags. It's also not possible to apply such a scheme retrospectively, so their whole surprise charge idea would have failed.